I understand buying stocks. you click buy, it goes to exchange, gets matched, lands in demat. bonds seem similar but there are extra things like accrued interest, settlement, dirty price. can someone literally walk me through what happens from when I click buy to when the bond is mine?
Step by step. You see a bond listed at a clean price of Rs 10,200. You click buy. Before settlement the platform calculates the accrued interest since the last coupon date and adds it to the clean price to get the dirty price, which is what you actually pay. So if accrued interest is Rs 180, you are charged Rs 10,380 not Rs 10,200. Your bank account is debited Rs 10,380. Settlement happens on T plus 1, meaning one working day after your order. The bond appears in your demat account the next working day.